Equities mixed after Wall Street retreat - 18.1.2024

The Dollar strengthening has halted currently. The live dollar index data show the ICE US Dollar index, a measure of the dollar’s strength against a basket of six rival currencies, added 0.1% Wednesday.

Both GBP/USD and EUR/USD reversed their retreating on Wednesday as the Office for National Statistics reported UK inflation unexpectedly ticked up to 4% over year in December. Both euro and Pound are higher against the dollar currently. USD/JPY continued its advancing yesterday while AUD/USD slowed its sliding with both the yen and the Australian dollar higher against the Greenback currently.

The US stock index futures are higher currently ahead of Department of Labor Jobless Claims report at 14:30 CET today. The three main US stock indexes ended lower again on Wednesday in the narrow range from -0.6% to -0.3% led by technology shares after stronger than expected retail sales data weighed on hopes that the Federal Reserve would cut interest rates as early as this March.

European stock indexes futures are mixed currently after indexes closed lower yesterday with mining stocks leading losses. Asian stock indexes futures are mostly lower today with Hong Kong’s Hang Seng Index defying the trend after hitting lowest levels last seen in late-2022.

Brent is extending gains presently as OPEC forecast relatively strong growth in global oil demand over the next two years. Prices were mixed yesterday on supply concerns as below-zero degrees Fahrenheit temperatures caused oil output in North Dakota to fall by 650,000 to 700,000 barrels per day (bpd), more than half its typical output. The US Energy Information Administration will report US crude stocks today at 17:00 CET. The US oil benchmark West Texas Intermediate (WTI) futures added 0.2% and is higher currently. Brent crude lost 0.5% to $77.88 a barrel on Wednesday.